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Chapter 10 Developing a

Global Management Cadre

PowerPoint byKristopher Blanchard

North Central University

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Introduction

To maximize long term retention and use of international cadre through career management so that the company can develop a top management team with global experienceTo develop effective global management teamsTo understand, value, and promote the role of women and minorities in international management in order to maximize those underutilized resourcesTo maximize the benefits of an increasingly diverse workforce in various locations around the worldTo work with the host country labor relations system to effect strategic implementation and employee productivity.

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Preparation Adaptation, and Repatriation

Effective HRM ends with the successful repatriation of the executive into company headquarters

Companies must prepare to minimize the potential effects of reverse culture shock

Ineffective repatriation practices are clear – few managers will be willing to take international assignments

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Preparation Adaptation, and Repatriation

A mentor program to monitor the expatriate’s career path while abroad and upon repatriationAs an alternative to the mentor program, the establishment of a special organizational unit for the purposes of career planning and continuing guidance for the expatriateA system of supplying information and maintaining contacts with the expatriate so that he or she may continue to feel a part of the home organization.

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The Role of the Expatriate SpouseWe began to realize that the entire effectiveness

of the assignment could be compromised by ignoring the spouse.

—Steve Ford, Corporation Relocations, Hewlett-Packard

Research on 321 American expatriate spouses shows effective cross-cultural adjustment is more likely– When the firms seek the spouse’s opinion about the

international assignment – When the spouse initiates his/her own pre-departure

training

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Expatriate Career Management

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Developing a Global Management Cadre: Expatriate acquired skills

Managerial Skills, not Technical Skills – learning how to deal with a wide range of people

Tolerance for Ambiguity

Multiple Perspectives – learning to understand situations from the perspective of local employees and businesspeople

Ability to Work with and Manage Others – learning patience and tolerance

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Global Management Teams

The term global management teams describes collections of managers from several countries who must rely on group collaboration if each member is to experience the optimum of success and goal achievement.

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Global Management Teams

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Virtual Transnational Teams

Virtual groups, whose members interact through computer-mediated communication systems, are linked together across time, space, and organizational boundaries

Virtual global teams are horizontal networked structure, with people around the world conducting meetings and exchanging information via the Internet, enabling the organization to capitalize on 24 hour productivity

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Operational Challenges for Global Virtual Teams

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Managing Transnational Teams

Do members work together with a common purpose? Is this purpose something that is spelled out and felt by all to be worth fighting for?Has the team developed a common language or procedure? Does it have a common way of doing things, a process for holding meetings?Does the team build on what works, learning to identify the positive actions before being overwhelmed by the negatives?Does the team attempt to spell out things within the limits of the cultural differences involved, delimiting the mystery level by directness and openness regardless of the cultural origins of participants?Do the members recognize the impact of their own cultural programming on individual and group behavior? Do they deal with, not avoid, their differences in order to create synergy?Does the team have fun?

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Managing Transnational Teams

Cultivate a culture of trust: One way to do this is by scheduling face-to-face meetings early onRotating meeting locationsRotating and diffusing team leadershipLinking rewards to team performanceBuild social networks among managers from different countries

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The Role of Women in International Management

Avoid assuming that a female executive will fail because of the way she will be received or because of problems experienced by female spouses

Avoid assuming that a woman will not want to go overseas

Give female managers every chance to succeed by giving them the titles, status, and recognition appropriate to the position – as well as sufficient time to be effective.

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Working within Local Labor Relations

The term labor relations refers to the process through which managers and workers determine their workplace relationship. This process may be through verbal agreement and job descriptions, or through a union written labor contract which has been reached through negotiation in collective bargaining between workers and managers.

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Working within Local Labor Relations

The participation of labor in the affairs of the firm, especially as this affects performance and well-being

The role and impact of unions in the relationship

Specific human resource policies in terms of recruitment, training, and compensation.

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Organized Labor Around the World

Wage levels which are set by union contracts and leave the foreign firm little flexibility to be globally competitive

Limits on the ability of the foreign firm to vary employment levels when necessary

Limitations on the global integration of operations of the foreign firm because of incompatibility and the potential for industrial conflict.

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Convergence Versus Divergence in Labor Systems

Convergence in labor systems occurs as the migration of management and workplace practices around the world results in the reduction of workplace disparities from one country to another. This occurs primarily as MNCs seek consistency and coordination among their foreign subsidiaries, and as they act as catalysts for change by “exporting” new forms of work organization and industrial relations practices.

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Trends in Global Relations Systems

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Comparative Management in Focus: Germany

Codetermination Law (mitbestimmung) – refers to the participation of labor in the management of the firm– Mandates representation for unions and salaried

employees on the supervisory boards of all companies with more than 2,000 employees and work councils of employees at every work site

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Comparative Management in Focus: Germany

Union membership is voluntary with one union for each major industry

Set the pay scale for about 90% of the country’s workforce

Play an active role in hiring, firing, training, and reassignment during times of reorganization and change

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Comparative Management in Focus: Germany

Foreign companies operating in Germany also have to be aware ha termination costs are very high– Including severance pay, retraining costs, time

to find another job

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Looking Ahead

Chapter 11 – Motivating and Leading– Motivating– Cross Cultural Research on Motivation– Leading– The Global Leader’s Role and Environment– Cross-cultural Research on Leadership– Contingency Leadership – The Culture

Variable